After the new budget is declared, leading auto manufacturers are planning to reduce the prices of their high-end cars as a result of the benefit of the excise cut on big cars. 

The first one to announce the decrease in the price of Rs 6000 on its partner Mitsubishi's Pajero, Outlander  and Montero cars is Hindustan Motors Ltd (HML). 

They would pass on the benefits of excise cut, says BMW, General Motors and Toyota, while Tata Motors told it would soon announced its decision on it. 

P Balendran, General Motors India Vice President told to the media, “We will pass on the benefits of this excise duty cut to our customers immediately”. 

Toyota Kirloskar Motor (TKM) too will react according to the Budget’s proposal. Sandeep Singh, TKM Deputy Managing Director (Marketing) said that, “we have always been passing on all benefits to the customers, which we get from the government. Though this cut is very less, still we will pass on this”. 

However, Honda Siel Cars India (HSCI) said it would not cut the prices of its vehicles. HSCI spokesperson said that, “we will not cut prices. There is lot of pressure on bottom line due to depreciation of Rupee in the international market”. 

During the declaration of the Budget today, Pranab Mukherjee our Finance Minister proposed to reduce the additional excise duty on big cars with engine capacities of 2,000 cc and above by Rs 5,000 per unit. The Minister also decreased the duty of petrol-driven trucks to eight per cent from 20 per cent at present.

Related Books:
A to Z of Sports Cars, 1945-1990: The Encyclopaedic Guide to More Than 850 Marques and Thousands of Models
Specialist Sports Cars: The Good, the Bad and the Ugly from a Very British Breed
Famous Ford V-8s: '32-48 Cars That Won America's Heart!

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Posted by Naresh Koshti on 7 July, 2009 3:39:35 PM IST #